Snapshotsan Introduction to Tourism By Norma – Test Bank

Complete Test Bank With Answers

 

 

Sample Questions Posted Below

 

1) Back-of-the-house departments include food and beverage and catering.

a. True

b. False

Answer: b

Page Reference: 133

2) The major difference between a motel and a hotel is that a motel has rooms with direct access to the parking lot.

a. True

b. False

Answer: a

Page Reference: 127

3) The first inn constructed in North America was built in Boston in 1706.

a. True

b. False

Answer: b

Page Reference: 126

4) A “double” is a room with two double beds.

a. True

b. False

Answer: b

Page Reference: 138

5) The standard or highest daily rate charged by a hotel for a room rental is called the rack rate.

a. True

b. False

Answer: a

Page Reference: 138

6) A franchisor is the purchaser of a franchise operation.

a. True

b. False

Answer: b

Page Reference: 130

7) When a guest supplies their credit card at the time of booking as a form of payment, they have a confirmed reservation and can arrive at any time.

a. True

b. False

Answer: b

Page Reference: 146

8) MAP is a meal plan that includes two meals with the room rate, usually breakfast and dinner.

a. True

b. False

Answer: a

Page Reference: 145

9) Accommodations that provide communal washrooms and bedrooms along with the use of a kitchen are called hostels.

a. True

b. False

Answer: a

Page Reference: 143

10) Lodging available along highways are typically motels, not hotels.

a. True

b. False

Answer: a

Page Reference: 137

11) Hotel employees who seldom come into direct contact with guests work in the back of the house.

a. True

b. False

Answer: a

Page Reference: 133

12) Private owners become affiliated with various organizations in order to attract the business of franchisees. 

a. True

b. False

Answer: b

Page Reference: 129

13) Having a nationally known brand name is one of the advantages of being involved in the franchise system.

a. True

b. False

Answer: a

Page Reference: 131

14) Campgrounds continue to be popular with cost-conscious travellers.

a. True

b. False

Answer: a

Page Reference: 144

15) If you find that your bedspread has been folded down and there is a chocolate on your pillow, you have likely received turn-down service.

a. True

b. False

Answer: a

Page Reference: 144

16) The terms owner and manager have the same meaning in the lodging industry.

a. True

b. False

Answer: b

Page Reference: 129

17) A franchisor may cancel or buy back a franchise at any time if the franchisee breaks the rules.

a. True

b. False

Answer: a

Page Reference: 131

18) Room service is seldom available in suburban hotels but always available at downtown hotels.

a. True

b. False

Answer: b

Page Reference: 134-135

19) Maintaining a favourable image for a lodging property is a role that typically falls to the advertising team.

a. True

b. False

Answer: b

Page Reference: 133

20) Housekeeping is only responsible for keeping hotel rooms clean and tidy.

a. True

b. False

Answer: b

Page Reference: 135

21) One of the first styles of hotel was called a hospitium. It provided ____________________.

a. lodging with a full array of services

b. lodging at a budget level

c. healthcare and aid to travellers

d. services for your vehicle

Answer: a

Page Reference: 125

22) An individual hotel owner wishing to have the benefits of a large chain or franchise but not wanting to give up control of his hotel would probably choose to become part of a _________________.

a. consortium

b. referral system

c. franchise

d. REIT

Answer: b

Page Reference: 130

23) When a group of properties all use the same name and report to a central headquarters for direction, they are called a ___________________.

a. corporate chain

b. franchiser

c. joint venture

d. management contract

Answer: a

Page Reference: 130

24) A hotel that is owned by one company and operated by another is an example of _________________.

a. individual ownership

b. a franchise

c. a management contract

d. a REIT

Answer: c

Page Reference: 131-132

25) Lower borrowing costs, national advertising, and managerial assistance are advantages of what type of hotel ownership/management?

a. Individual ownership

b. Franchise

c. Management contract

d. Chain ownership

Answer: b

Page Reference: 131

26) The process of helping a customer with a guaranteed reservation to find another hotel for the night because your hotel was overbooked is called _______________.

a. customer service

b. walking

c. relocating

d. reservation searching

Answer: b

Page Reference: 147

27) As a group, the largest hotels in the world are located in __________________.

a. Malaysia

b. Las Vegas

c. Thailand

d. Russia

Answer: b

Page Reference: 136

28) When a city centre hotel determines that it needs to increase its business services to business clientele, it is focusing on __________________.

a. demographics

b. psychographics

c. purpose of visit

d. geographic location

Answer: c

Page Reference: 139

29) Which type of accommodation caters to large business groups and meetings, usually in the downtown area of major cities?

a. Conference hotel

b. Resort hotel

c. All suite hotel

d. Economy hotel

Answer: a

Page Reference: 137

30) Banquets and catering are particularly good revenue generators because _____________________.

a. hotels charge a great deal more for this service because it requires extra staff

b. more people means more money

c. the kitchen can use the food already prepared for the dining room

d. the number of guests and the menu is known in advance, helping to control costs

Answer: d

Page Reference: 135

31) Some customers will purchase a “piece” of a condominium, typically divided by segments of time. They are investing in _______________.

a. a time-sharing program

b. a real estate investment trust

c. a lodging franchise relationship

d. a rental agreement

Answer: a

Page Reference: 141-142

32) “Putting on the ritz” means ___________________.

a. that you are dressing up like Cesar Ritz

b. living, behaving, or dressing in a refined and fashionable manner

c. putting on pretentious airs to impress others

d. providing excellent service to guests

Answer: b

Page Reference: 147

33) An example of a position found in the “front of the house” of a hotel would be ______________.

a. marketing

b. housekeeping

c. security

d. engineering

Answer: b

Page Reference: 133

34) When properties are placed too close together, the competition that occurs from within the same company is called _______________.

a. healthy

b. protectionary

c. cannibalistic

d. dysfunctional

Answer: c

Page Reference: 131

35) Becoming associated with the Canadian Automobile Association and the Hotel Association of Canada _______________________.

a. is standard for every hotel property in Canada

b. helps smaller, independently owed hotels to compete with larger chains

c. improves the reputation of your franchise

d. is a legal requirement when establishing a REIT

Answer: b

Page Reference: 129-130

36) When a customer checks in at 11:00 A.M. and checks out by 5:00 P.M., what rate would a hotel normally charge?

a. A confirmed rate

b. A rack rate

c. A packaged rate

d. A day rate

Answer: d

Page Reference: 138

37) Payroll, auditors, and purchasing agents are all a part of which department?

a. Front office

b. Accounting

c. Marketing

d. Room service

Answer: b

Page Reference: 134

38) Hotels will take a greater number of room reservations than they have rooms available (i.e., overbook) because __________________.

a. the statistics look good when an occupancy rate is sent to headquarters

b. they know a percentage of confirmed reservations will not be picked up

c. it is easy to find additional rooms for additional customers

d. of seasonality

Answer: b

Page Reference: 147

39) REITS is __________________________.

a. a new method hotel chains use to raise cash for expansion by selling shares

b. a new reservation system that automatically creates customer profiles

c. a group of hoteliers who band together under the brand name for advertising purposes

d. a new method of managing a hotel

Answer: a

Page Reference: 132

40) A room that has a separate living room and bedroom is called a __________________.

a. hospitality suite

b. family room

c. suite

d. condominium

Answer: c

Page Reference: 138

41) Factors that determine the price of a hotel room do not include ___________________.

a. a guest’s motivation

b. location of the hotel

c. number of occupants

d. seasonality

Answer: a

Page Reference: 144-145

42) In a hotel’s marketing mix, what would be considered part of “place”?

a. Location

b. A travel agency

c. Parking facilities

d. Type of hotel room

Answer: b

Page Reference: 145-146

43) If a catered event is listed as having an open bar, this means that _____________________.

a. alcoholic beverages will be served

b. guests are responsible to pay for their own beverages

c. the host of the event pays for all of the beverages ordered

d. the event will remain open until 1 A.M.

Answer: c

Page Reference: 135

44) An FAC is a franchise advisory council whose job is to ______________________.

a. advise prospective franchisees

b. provide a forum for franchisees to address their concerns and problems

c. set the rules and regulations that govern the franchising industry

d. help fund the franchisee dealing with legal problems

Answer: b

Page Reference: 131

45) Room service becomes the most expensive food service a hotel runs because __________________.

a. few people order from room service

b. equipment and the personalized service is expensive

c. the food products on the room service menu are more costly to make

d. the cost of providing a quality in-room menu is high

Answer: b

Page Reference: 134-135

46) Hotels may be owned and operated using four basic management systems. Briefly summarize the four major forms of ownership/operation, focusing on the following topics: 

a) two positive aspects of each style of ownership 

b) two negative aspects of each style of ownership

c) Define a REIT and explain the purpose they fulfill in the lodging industry. 

d) Which of the management systems discussed in this question would you most like to own or operate? Explain your reasons.

Answer: 

1) Private/individual ownership: 

a) Advantages: Complete control; ability to adjust to new trends/local needs; decision making process is free of bureaucratic red tape

b) Disadvantages: Owner assumes all risks; in poor economic times, owner lacks the financial backing of a large corporation; no national advertising/brand name.

2) Corporate chain:

a) Advantages: Reservation system (1-800) control from one central headquarters; national/international brand name advertising; changes easy to make in response to market demand

b) Disadvantages: Harder to run a multi-unit operation; at times corporate headquarters is out of touch with local needs (not clearly laid out in the text)

3) Franchise:

a) Advantages: Ready business format; help with location, training, brand name, and national/international advertising; reservation system (1-800); group buying discounts; lower borrowing costs

b) Disadvantages: Fees; no freedom to react to market needs; “power” lies with the franchiser, who can cancel the agreement if it is not strictly adhered to; you may be affected by another unit’s poor performance

4) Management contract:

a) Advantages: Privately owned hotel; full financial benefits; ability to make changes whenever the contract runs out

b) Disadvantages: While contract is in place, you have no role in operating the hotel; contract fees to pay

c) REITs are Real Estate Investment Trusts that allow a hotel to raise money by selling stock in the company. This provides the company with added revenue to expand or renovate without huge bank loans.

d) Answers will vary.

Page Reference: 129-132

47) Franchising is a popular method of expansion used in many business operations, including hotels, restaurants, and travel agencies.

a) Define the term franchise.

b) Summarize four advantages and disadvantages to owning a franchise.

c) Would you choose this business format as part of your future career plans? Why or why not? Explain your answer.

d) What is an FAC and would you consider joining one? Explain your decision.

Answer: 

a) Franchise: A business format purchased as a “turn key” operation with everything designed and in place for the new owner. 

b) Advantages: Brand name; national/international advertising; lower borrowing costs; professional managerial assistance; group buying discounts; employee training; common decor/familiar atmosphere.

Disadvantages: Franchise fees; adversely affected by other poorly run units; failure of the parent company; strict policies and procedures with little room for adjustment; control the franchisor has over the franchisee

c) Choosing to franchies: PRO: You will learn good business methods with a good revenue stream, and favourable image is pretty much guaranteed. CON: You have no ability to do things your way.  Answers will vary. 

d) FAC: Franchise Advisory Council, franchisees who join forces to deal with franchises that do not provide adequate services. To join or not? Answers will vary.

Page Reference: 137-138

48) Large hotels have two distinct areas of operation: the front of the house and the back of the house. 

Explain the difference between these two areas by: 

a) choosing three front-of-the-house departments and summarizing their daily duties 

b) choosing three back-of-the-house departments and summarizing their daily duties 

c) Choose one department from the front of the house and one from the back of the house you would like to work in, explaining the reasons for your choice.

Answer: 

Front of the house has personal one-on-one contact with the guest, whereas back of the house usually does not.

a) Front of the house departments:

Front office and guest services (check in, check out, concierge services, reservations)

Housekeeping (cleaning rooms and public areas)

Food and Beverage (dining rooms and bars)

Sales and marketing (set up banquets, special events, conferences/conventions) 

b) Back of the house departments:

Administration (management/reception staff)

Accounting (all financial transactions)

Engineering (upkeep and maintenance of the hotel)

Security (overall safety of guests and the property)

Food and Beverage (kitchen staff)

c) Answers will vary. 

Page Reference: 133-136

49) Hotels often have a wide variety of prices available to customers, rarely holding to a single fixed price. 

i) Identify five variables that can influence the price of a room; provide a brief description of your choices. 

ii) Hotels establish a selection of meal plans that can be offered to guests. Describe three distinct meal plan packages.

Answer: 

i) May include: location, room size and amenities, expectations of customers, competitors, seasonality, group discounts, discounts based on market segments, or available meal plans

ii) May include: European plan, Continental plan, Bermuda plan, American plan, Modified American plan

Page Reference: 144-145

50) There are various classifications of lodging establishments within the accommodations industry. Explain some of the ways accommodations are categorized. Include in your answer a description of specific types of accommodations within each category, along with a specific Canadian property that fits into each of your examples. 

Answer: 

This answer will vary by student. However, answers could address classifications centred on location of property, purpose of trip, level of service, or niche subsections and interests. 

Specific examples for location could include downtown properties, conference hotels, airport lodging, resorts, and/or inns (list not exhaustive).

Specific examples for purpose of trip could address business or pleasure travel, meetings to family gatherings, etc.

Specific examples for level of service could range from luxury to budget.

Specific examples for niche markets might touch on dude ranches, bed-and-breakfast models, hostels, yurts.

Students will need to provide a link to a property in Canada for each example they bring forward; these will vary based on the student, but the links that connect the example and the property should be clear and evidence-based. 

Page Reference: 136-143

51) Marketing the accommodations sector can be challenging because of the unique characteristics of the product. Explain the following and identify one method a hotel might use to control: 

a) intangibility of the product 

b) seasonality 

c) quality of the product (which is often dependent on factors beyond the control of the manager/owner) 

d) perishability 

e) pricing 

f) promotion

Answer: 

a) Because the purchaser cannot see or experience the product prior to buying it, hotels use websites, colour brochures, and media advertising to make it seem tangible.

b) Hotels have been forced to create seasonal rates and packages, and activities that support off-season vacationers (skiing, theatre, etc.).

c) Bad weather, rude or sloppy service; managers must stay on top of guest services and needs at all times.

d) If you don’t sell your rooms tonight, the ability to generate revenue from them is lost.

During slower seasons hotels provide special room rates, short-term packages, and additional services (health spa, restaurant) to attract customers.

e) Pricing depends on services and facilities offered, the location of the hotel and of the individual room, what the competition is charging, and what the market will bear.

f) Use of a website, TV promotions, community involvement (sponsoring an event/kids sport, etc.), and brochures for travel agents/information kiosks are all ways to promote the accommodations sector.

Page Reference: 134-138